9 JUN 2011
By Derek Scally in Berlin | Irish Times
FINANCIAL STABILISATION: GREEK EFFORTS to stabilise public finances and push through reforms have ground to a halt in the last quarter, according to officials from the IMF, the ECB and the European Commission.
The latest so-called “Troika” report, seen by The Irish Times yesterday, made a grim impression when presented to German MPs in Berlin yesterday evening.
At a crunch parliamentary party meeting, members of the ruling Christian Democrats (CDU) and Free Democrats (FDP) heard that Greece will require fresh aid from euro zone members because of the “prohibitive” cost of the alternative: returning to financial markets.
“The financing strategy needs to be revised,” said the report’s authors.
“Given the remoteness of Greece returning to the funding markets in 2012, the adjustment programme is now underfinanced. The next disbursement cannot take place before this underfunding is resolved.”
Greece’s debt situation will peak in 2012/13, the troika said, while the financial sector “remains very tense”.
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